Farmers worry as cost of Irish products rises
COUNTY WEXFORD farmers are worried about the effect of the Brexit vote on their future livelihoods, according to IFA chairman Pat Murray.
Pat said he received numerous telephone calls from concerned farmers on the morning of the referendum result last week.
‘ They’re feeling very uncertain and wondering what is the impact for them. It’s a fair shock to all of us,’ said the county chairman, who revealed that he was ‘very surprised’ at the result.
‘People are worried about what’s going to happen. Most of the changes probably won’t happen for two years but in the short term, the Sterling rate change will have an immediate effect on the value of our exports to the UK and Northern Ireland.’
‘ The food sector is the one that will be most affected. All farmers rely on the UK market. Ireland exports 50% of its beef to the UK and we are also a big supplier of dairy products and lamb there. We’re hoping that food exports will continue at the same level.’
‘ There is a long history of trade between Ireland and the UK and I expect that we will always be an exporter to Britain,’ he said.
‘But a continued drop in Sterling will have the effect of making Irish products more expensive for the UK consumer. There is a fear that the Britain could go to Brazil or other countries to source beef. However, they do not have the same standards that we do in Ireland.’ ‘Ireland is renowned for the quality and standard of the products it places on British supermarket shelves and we’d hope that this would ensure continued sales.’ ‘Hopefully, the Irish government will sit down and talk to the UK government about the implications for Irish food exports,’ said Pat. If market changes result in any further reduction in farmer income, it will be very unwelcome as 2016 has already seen an erosion in prices paid to farmers, according to Pat. ‘In 2014, we were getting 38/39c for a litre of milk. In 2016 that has gone down to 21c. In 2013, a tonne of barley was worth €200 to the farmer. This year, it’s €120/€130. Lambs are worth €100 compared to €210 a few years ago.’ ‘It’s been a very difficult year. Most of it is due to increased production across the board. The producer is under pressure even without what is happening in the UK. ‘ The markets panicked in the immediate aftermath of the vote but I would expect things will stabilise within the next week or two.’ he said. The IFA chairman said Wexford farmers are also concerned about the withdrawal of British financial support for the EU. ‘ The UK is a net contributor to the EU and its departure could have an effect on the payment system. There will be less money to go into the coffers for the schemes that farmers are paid out of.’ (Maria Pepper)